Incentivizing managers to build innovative firms

Patents, Executive compensation, Pay-for-performance sensitivity, G32, G30, L2, O3,

Evaluating the Short-Run Benefits of Six Department of Energy R&D Projects

This paper evaluates the short-run benefits of research and development (R&D) projects funded by the Automotive Lightweighting Materials (ALM) Program of the Office of FreedomCAR and Vehicle Technologies of the U.S. Department of Energy (DOE). The six ALM projects evaluated—using qualitative and quantitative evaluation methods—yielded numerous benefits in the short-run. From the qualitative assessment, all met their technical goals, increased intellectual knowledge among the research teams, and led to increased collaboration among DOE, the auto industry, its suppliers, and national laboratories. Moreover, U.S. competitiveness appeared to have increased as a result of each R&D effort. One interesting finding, however, is that most of the participants indicated their firms would not have engaged in the research efforts without DOE funding. If they had engaged in the effort, it would have been with considerably less person time and financial commitment. With respect to quantitative measures, several graduate students were supported by the projects and numerous publications and presentations resulted, although these metrics varied across the ALM R&D projects. Copyright Springer Science+Business Media, Inc. 2005Government research and development, evalution metrics, lightweight vehicles, public/private collaboration,